Users can browse for video content as well as login to their
personal YouTube accounts to view and save their favorite videos.

In addition, Apple announced that its upcoming iPhone
will also feature YouTube support when it launches on June 29. iPhone users
will be able to browse YouTube content through EDGE networks or through the
built-in WiFi connection. The iPhone will also be able to take advantage of
H.264-encoded videos -- over 10,000 videos encoded in H.264 will be available
for viewing on June 29.

"iPhone delivers the best YouTube mobile experience by
far," said Apple CEO Steve Jobs. "Now users can enjoy YouTube
wherever they are -- on their iPhone, on their Mac or on a widescreen TV in
their living room with Apple TV."

While viewing YouTube from your couch could cure your boredom at times, I dont quite know how a such a small video is going to look watchable on a 37-42" screen. Most are difficult to see on a 19/20" monitor as it is.

Also, i love the idea of the Apple TV as a media extender from your PC through your wireless network, but the encoder limitations make the outrageous price tag difficult to swallow.

I dont think it matters where you download your material from - whether you rip your own movies and back them up into H.264 or divx or xvid, or get them from file shares, or torrents, etc....The point is that for something to be considered as a media extender, to ME personally, would have to be able to play all of my content as is, without my spending hours encoding into a format that a certain brand tells me to. Being that newer standalone DVD players are now supporting Divx Ultra (and in the $50> price range),I think it would be incredibly cheap for the Apple TV to support more codecs.